An ideal debt amount a person can take depends on his ability to service the debt as well on his current net worth position. A person with a net worth of $3m and another person with a net worth of $300k should see a $1m mortgage differently, even though both have the same salary, job stability and are of the same age. In the worst case scenario, the person with higher net worth can easily sell off his assets to pay off the $1m mortgage.

So, a rich person can have a higher debt than a poor person.

The problem with today's young professionals is they take on too much debt, justifying their actions based on their income. Since young people nowadays are paid highly, they become over confident and start buying condo, sports car, branded goods, go for expensive holidays, etc. Many find themselves unable to manage their debt and end up declaring bankruptcy.

If you are young and has a household income of $200k, the best is to stay in a 3 room HDB flat. Save up enough cash. Then when you sell your flat, make sure if you are buying a $1m condo, your downpayment should be $600k. Borrow only $400k.